The Company has established the Compensation Management Policy for Directors and Senior Management, which clearly stipulates the compensation standards and decision-making procedures for internal directors, external directors, and independent directors. The basic salary standards are set by the Remuneration and Appraisal Committee, where the director remuneration plan for directors is reviewed and approved by the shareholders’ meeting, and the compensation for senior management is reviewed and approved by the Board of Directors. The Company highly values shareholders’ voice in compensation governance, granting them comprehensive voting rights over director remuneration policies and their execution, covering aspects such as compensation policy content and payment amounts. Shareholder voting scope includes the overall compensation policy and total compensation, not limited to individual compensation components, ensuring comprehensive participation in decision-making. The voting targets include all directors of the Board of Directors, supporting either collective or individual decisions, respecting shareholders’ autonomy. A mechanism of annual compensation voting is implemented to ensure shareholders’ continuous supervision and adjustment of compensation policies, ensuring alignment with company strategy and shareholder interests, promoting stable development under a reasonable and fair compensation system.

The Company regularly conducts performance evaluations, assessing the Company’s directors and senior management based on the previous year’s business objectives and major developmental achievements, and establishes the basic salary standards for the current year’s senior management. The annual salary and bonuses for senior management, as appraised, are linked to the Company’s sustainable compensation performance. We have revised the Compensation Management Policy for Directors and Senior Executives. The policy clearly outlines the mechanism for recouping and retrieving directors’ and management’s compensation, requiring directors and senior management to potentially forfeit all or part of their compensation in cases of significant violations, harm to company interests, severe dereliction of duty, or regulatory penalties, with the Remuneration and Appraisal Committee reserving the right to pursue legal action.